Cardiff council's planning committee voted to approve the application to change the use of the building to a hotel, subject to conditions.

The decision does not extend to any building work, which will be discussed at a later date.

Developers said the 200-suite hotel would create about 100 jobs during construction and a further 60 once it opened.

Signature Living founder Lawrence Kenwright welcomed the decision, adding the firm would be on site "within the next couple of weeks".

"After years of dereliction and decay, the Coal Exchange will once again become an outstanding landmark building for the people of Cardiff and a truly first-class hotel, conferencing and major events venue," he said.

Other plans for the development include function rooms, a restaurant and bar and a spa.

It is expected to take about 18 months to compete the work and the venue would also host weddings and conferences.

Image caption
The trading floor of the Coal Exchange at its peak

A brief history of the Coal Exchange

Dates back to 1883 when Cardiff was at the centre of the coal trade

Coal merchants, ship owners and their agents met daily on the trading floor

At one time the price of the world's coal was determined there and in 1904 the world's first recorded £1m deal was struck there

Closed in 1958 after the decline of the coal industry

Earmarked as a future home for the Welsh Assembly but that plan fell through after devolution was rejected in a 1979 referendum

In more recent years it has been used for concerts, dinners and other events, but closed in 2013

There were once plans for the exchange hall to be restored and a 1,300-seat banqueting hall, public square, office space and innovation centre developed